“Buy good companies
Don’t overpay
Do nothing”
Maybe 5% of your portfolio is to buy & sell growth shares as & when you have made a nice profit. Some people trim 50% profit and let the rest ride. There are many basic strategies.
Personally, 100% gain to me is the same as 300% gain. I’m happy to take a profit and reinvest elsewhere occasionally.
It is hard to say whether the hype will continue.
I would sell half the investment and leave the profits, as I think the fundamentals don’t justify the valuation, that is not to say that it won’t rise even more. I don’t see them going to the moon anytime soon, however I have not looked much into it.
We cannot give investment advice (and this is not such), but these are our thoughts.
PJ. Good ethos.
Trim your gains… Unless you know or are sure of the company. Spce looks like a speculative bet at these prices.
It’s literally going galactic today.
I get nervous when this happens! Is it being taken over by the short squeeze squad? I was hoping to buy and hold for years but will I now have to look for an axing price to sell at??
Pretty mental where the price is. I’ve bought in and out of SPCE a few times last year and every time I’ve seen a decent profit I get out because it never holds. Disappointed not to be in on this rise but if it was my money I’d definitely be running with my profit at the level it’s at.
This is just getting ridiculous now 
Well that was emotional. Looking forward to the next test flight.
I’m in the same situation as you. Thinking of taking my profits and waiting/secretly hoping the price does fall again so I can re-buy. Did you sell yet?
No unfortunately not. Wish I had now though! Probably to play the long game now
Virgin Galactic doesn’t do orbital launches so it doesn’t have anything to do with satellites, it’s just short pleasure trips to the edge of space.
Virgin Orbit is a separate company that does put (very small) satellites into orbit.
GameStop isn’t the only stock going to the moon.
Wait until Richard Branson takes his test flight. Virgin Galactic’s Richard Branson wants to be the first ‘space billionaire’ to actually travel to space. If anyone remembers 20 years ago Branson made big headlines all over the world with his balloon adventures. His test flight into space will be big news.
There is some short interest in SPCE, 72% of the public float is in the hand of shorts. Nothing like the levels of GameStop. But why even 72%? I don’t get it? Actually 72% is a large amount of stock to be short.
While I get some reasoning for shorting a game retail store, I don’t get it for SPCE:
• It has $700 million in cash. Raised last year, it can raise money at higher valuations so no benefit for the shorts there.
• It’s a pioneering technology company, furthering humankind’s advancement in space travel.
So, my guess is that the shorts strategy is to profit from a catastrophic failure in the test flights. There is some history and unfortunately test pilots were killed.
So, while pioneering test pilots risk their lives, we have the shorts hoping for the worse outcome so they can profit. Time to prove them wrong.
Maybe it’s the Branson effect, people want to see him fail because he’s such a … 
Same here. You can’t second guess where the price will go and the what ifs about continuing to hold.
100% returns don’t usually come that often and this fast. A good tactic is to take 50% profit and leave the rest for your long term. If the price falls back you have the option to buy back in again. But finding another 100% elsewhere reduces your risk.
You can see Adam Jonas thesis here, it’s from last year but nothing has really changed. While he was originally bullish the price has run away since then, hence the downgrade.
I’d imagine shorts are making similar assumptions (probability of success in hypersonic, appetite for space tourism) in their DCF models.
Few years time Branson will come asking for a bail out from tax payers
Interesting. biotech-type risk/reward is a good way to state it for SPCE. Being a short means being ultra pessimistic for this stock. With the test flight going ahead it shows high confidence from SPCE and with their focus on safety they would delay it otherwise, as they have done several times, which investors understand, and the share price continues higher.
